Stop Trying to Save Money (Just Spend Better)
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It doesn’t matter how much you cut back – if you don’t get smarter about the money you do spend, you’re just playing defense.
So instead of constantly trying to spend less, let’s talk about how to spend better.
1. Stop Looking for the Cheapest Option (Look for the Best Value)
Many people think saving money means always picking the lowest priced item. But cheap isn’t always cheaper in the long run.
Let’s say you’re deciding between a $10 shirt and a $30 shirt. On the surface, it might seem like you’re getting the better deal by choosing the cheaper one. But if that $10 shirt barely lasts six months before it starts looking like trash, while the $30 shirt lasts four years, the latter actually gives you the better value.
Instead of asking, “What’s the lowest price I can find?” ask yourself, “What gives me the best value for my money within my budget?” Even if you pay a little more upfront, you’re not wasting money in the long run.
2. Use Money to Solve Problems, Not Create New Ones
A lot of spending happens because we’re looking for a quick fix or a pick-me-up. But when you rely on spending to soothe emotions or make yourself feel better, you might end up with more problems than you started with, especially if you can’t really afford the comfort you’re trying to buy.
Treating yourself to dinner after every bad workday doesn’t change the fact that you might hate your job, and a new pair of shoes every time you’re spiraling won’t make your anxiety disappear. Even if you get a hit of dopamine and feel better in the moment, that feeling usually lasts only a few hours.
Start asking yourself: “Is this purchase fixing a real problem in my life, or is it just a distraction?” You’re much better off spending money on something with purpose. So instead of buying a new outfit to deal with hating your job, put that money toward a workshop or learning a skill that can help you pursue something else.
3. Focus on What You Keep, Not What You Save
Most people love a good discount. But if you buy something just because it’s on sale, you didn’t save money. What you did do, however, is spend money on something you probably wouldn’t have bought otherwise.
A smarter approach is to focus less on the money you “save” at checkout and more on what you could have in your bank account if you’d skipped the purchase altogether. Saving 50% on something you didn’t need is still wasting 50% of your money.
4. Stop Choosing Between Saving and Spending
If you’re constantly forcing yourself to choose, saving will always feel like a sacrifice. Instead, set up automatic transfers so saving happens first and happens without effort.
You are your biggest asset, so treat your savings account like a bill you have to pay. Imagine your savings as a new expense you can’t skip.
Once your savings, bills, and essentials are covered, you can spend the rest however you want – guilt-free. When you get to this point, you’re no longer battling yourself over every little purchase.